Question: QUESTION 5 4 p The Wisdom Mutual Fund has had the following returns over the past 5 years: 15%, -5%, -3%, 18%, and 17%. What

 QUESTION 5 4 p The Wisdom Mutual Fund has had the

QUESTION 5 4 p The Wisdom Mutual Fund has had the following returns over the past 5 years: 15%, -5%, -3%, 18%, and 17%. What is the average compound rate of return according to the geometric mean calculation? a. 5.93% b.6.09% c. 7.05% O d. 7.91% QUESTION 6 4 points According to the arbitrage pricing theory, the return on a stock a. depends on the stock's responsiveness to unexpected changes b.equals the market return if the expected rate of inflation is realized c. is reduced through the construction of diversified portfolios d. is not related to the expected return on the stock

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